I am working in the construction Industry. We have a employees who left the company and wants to come back after a duration of 6 months . Now i am facing a situation here is that when he left the company his salary was about 30000 and now his present salary is 45000 and his expectation is for at least 50000.
We have other employees at the same level of similar qualification and experience whose salary range is from 30000-40000. The operations people are strongly recommending to take back the employee.
What should be done ?? as if i take him on his expectation salary there will be disparity among the employees. I have many similar cases.
Please advice.
From United Arab Emirates, Dubai
We have other employees at the same level of similar qualification and experience whose salary range is from 30000-40000. The operations people are strongly recommending to take back the employee.
What should be done ?? as if i take him on his expectation salary there will be disparity among the employees. I have many similar cases.
Please advice.
From United Arab Emirates, Dubai
Dear Prabhat,
This is called pay compression because in India this dilemma is always exist in compensation and most organization dosenot pay attention towards this problem. new employees always draw at higher end salaries and old employees paid below new recruit in simlilar job families or occupational groups for similar experience and qualification brackets.
Its always better to maintain consistancy in policy and internal equity in pay. New employee shall be adjusted and old employees also shall be adjusted with step up in pay equal to market price to avoid this kind of dilema. You will end up in paying more salary than market because your organization work profile do not required person of such extra ordinary qualification and experience shall also be varified.
Because in many cases employee cross the maximum salary limit for the job origionally management thought needs review every time. HE may be over qualified just because he may have worked with different profile in different organization for higher pay that does not mean he shall be paid on the basis of horse trading formulae.
Negotiations have limitation you cannot pay beyond marke value for assigned work load as well as nature and level of job. You have also see what is his level of job to eveluate your organization pay equity problem if his position is less and pay is more than his senior positioon in the organization you are creating huge problem and disatisfaction in the organization.
Be careful.............
Regrds
Rashid
From Saudi Arabia
8This is called pay compression because in India this dilemma is always exist in compensation and most organization dosenot pay attention towards this problem. new employees always draw at higher end salaries and old employees paid below new recruit in simlilar job families or occupational groups for similar experience and qualification brackets.
Its always better to maintain consistancy in policy and internal equity in pay. New employee shall be adjusted and old employees also shall be adjusted with step up in pay equal to market price to avoid this kind of dilema. You will end up in paying more salary than market because your organization work profile do not required person of such extra ordinary qualification and experience shall also be varified.
Because in many cases employee cross the maximum salary limit for the job origionally management thought needs review every time. HE may be over qualified just because he may have worked with different profile in different organization for higher pay that does not mean he shall be paid on the basis of horse trading formulae.
Negotiations have limitation you cannot pay beyond marke value for assigned work load as well as nature and level of job. You have also see what is his level of job to eveluate your organization pay equity problem if his position is less and pay is more than his senior positioon in the organization you are creating huge problem and disatisfaction in the organization.
Be careful.............
Regrds
Rashid
From Saudi Arabia
But how to handle the pressure from the operations people. How to make them understand this. Our Operations director is British and he says why somebody should be bothered if there is salary difference??
From United Arab Emirates, Dubai
From United Arab Emirates, Dubai
Hi,
Vous devez suivre «un salaire égal pour un travail égal politique" et que le salaire doit gamme fixée pour un employé de grade.
Faites votre ops directeur de comprendre la situation aussi lui dire si il; y a pas de la parité de rémunération alors il y aura attrition élevé.
REMARQUE: Ne pas compromettre les normes sur les HR.
-- Shash
From India, Delhi
Vous devez suivre «un salaire égal pour un travail égal politique" et que le salaire doit gamme fixée pour un employé de grade.
Faites votre ops directeur de comprendre la situation aussi lui dire si il; y a pas de la parité de rémunération alors il y aura attrition élevé.
REMARQUE: Ne pas compromettre les normes sur les HR.
-- Shash
From India, Delhi
Hello,
As discussed earlier, I support the view that there has to be internal equity within the organisation.
If increase in salary of an employee leads to failure of coordination among rest of the employees or lowers job satisfaction then hike in salary of one the employees is not practical.
There are chances that the operations head from Britain may not take up any responsibitlity if reappointment of one employee leads to lower productivity or increases the attrition level among other employees.
Although the operations head may play a vital role in deciding on the issue, he may fail to take responsibility of the resultant outcomes.
The employee today may be demanding 50k to continue working with the company but what is the guarentee that he will not demand more in the next couple of months?
If you are sure that he will not demand more than 50k in the next couple of months, after reviewing his performance probably you can pay the extra 5k indirectly i.e maybe additional telephone allowance, travelling allowance or any such allowances rather than giving him a hike in his Basic and DA
All in all, in this season of market recession, hike of salary in a company should not be demanded by the employees instead they should be paid by the company based on his/her performance
From India, Hubli
As discussed earlier, I support the view that there has to be internal equity within the organisation.
If increase in salary of an employee leads to failure of coordination among rest of the employees or lowers job satisfaction then hike in salary of one the employees is not practical.
There are chances that the operations head from Britain may not take up any responsibitlity if reappointment of one employee leads to lower productivity or increases the attrition level among other employees.
Although the operations head may play a vital role in deciding on the issue, he may fail to take responsibility of the resultant outcomes.
The employee today may be demanding 50k to continue working with the company but what is the guarentee that he will not demand more in the next couple of months?
If you are sure that he will not demand more than 50k in the next couple of months, after reviewing his performance probably you can pay the extra 5k indirectly i.e maybe additional telephone allowance, travelling allowance or any such allowances rather than giving him a hike in his Basic and DA
All in all, in this season of market recession, hike of salary in a company should not be demanded by the employees instead they should be paid by the company based on his/her performance
From India, Hubli
Thanks for response,
Express the threats of sudden pay hike leads to compensation crises and increase of budget in next three months to subside the issue. Tell him that this is global practice and including UK,USA and west all follow this principles of pay adjustment. FOr satisfaction of one employee you have to increase pay of rest of the staff in comming years because your benchmerk will be well above market which is totally abnormal.
He should take responsiblity for this if he wants to reward employee beyond market price of the job.The reason behind explanation is most of operation heads are technical background and they don't understand the HR phenominon so we need to explain them and correct them that they should adopt uniform policy and should be consistent.
No employee is indespensable organizations work on its won strength.
Regards
Rashid
From Saudi Arabia
Express the threats of sudden pay hike leads to compensation crises and increase of budget in next three months to subside the issue. Tell him that this is global practice and including UK,USA and west all follow this principles of pay adjustment. FOr satisfaction of one employee you have to increase pay of rest of the staff in comming years because your benchmerk will be well above market which is totally abnormal.
He should take responsiblity for this if he wants to reward employee beyond market price of the job.The reason behind explanation is most of operation heads are technical background and they don't understand the HR phenominon so we need to explain them and correct them that they should adopt uniform policy and should be consistent.
No employee is indespensable organizations work on its won strength.
Regards
Rashid
From Saudi Arabia
Hi
I would like to add some more comment to it .first of all you should not entertain employees who has left your organisation ,even if it is the pressure from opertaions.Well in that case you need to make your operations understand about it and this will definitely create a disparity among the exixting employees and the employees who have been loyal to the company will start feeling insecured and will not deliver results.I think this is a wrong practise and should be stopped.
Regards
Tejasvi
From India, Mumbai
I would like to add some more comment to it .first of all you should not entertain employees who has left your organisation ,even if it is the pressure from opertaions.Well in that case you need to make your operations understand about it and this will definitely create a disparity among the exixting employees and the employees who have been loyal to the company will start feeling insecured and will not deliver results.I think this is a wrong practise and should be stopped.
Regards
Tejasvi
From India, Mumbai
Hi,
I would first like to know if he has approached you about wanting to rejoin your company or is it that he is so good that the company cant do without him and hence is calling him back.
If it is the first, (he approached you) then you are at a position of strength and you will be able to dictate the terms. Such employees should always be paid the same salary that they were last drawing. In case the employee has missed out on a review cycle when he was away, you may hike his salary by half the percentage of what he would have got since he was not an employee with the company for the entire review period. The salary that he is currently drawing does not have to be taken into cognizance at this time. If he joins back and stays on and proves himself through his performance, in his next review the salary increase may include a correction (if any).
If it is the company that wants him back, then he may be given a hike in his salary taking into account the internal skill and salary parity. You cannot have one happy employee in the team at the cost of many unhappy ones for no fault of theirs.
All in all the most important aspect to be considered should be that - no employee can leave an organization and rejoin at his or her whim and fancy. No employer should be taken for granted in such a manner. You will have to use your convincing and negotiating skills to make this a win-win situation for the company/you as well as for the employee.
Hope this helps.
From India, Mumbai
I would first like to know if he has approached you about wanting to rejoin your company or is it that he is so good that the company cant do without him and hence is calling him back.
If it is the first, (he approached you) then you are at a position of strength and you will be able to dictate the terms. Such employees should always be paid the same salary that they were last drawing. In case the employee has missed out on a review cycle when he was away, you may hike his salary by half the percentage of what he would have got since he was not an employee with the company for the entire review period. The salary that he is currently drawing does not have to be taken into cognizance at this time. If he joins back and stays on and proves himself through his performance, in his next review the salary increase may include a correction (if any).
If it is the company that wants him back, then he may be given a hike in his salary taking into account the internal skill and salary parity. You cannot have one happy employee in the team at the cost of many unhappy ones for no fault of theirs.
All in all the most important aspect to be considered should be that - no employee can leave an organization and rejoin at his or her whim and fancy. No employer should be taken for granted in such a manner. You will have to use your convincing and negotiating skills to make this a win-win situation for the company/you as well as for the employee.
Hope this helps.
From India, Mumbai
Hello Prabhat,
This is a problem of every industry. I am working as manager HR in MFG unit in our company employee left the company at 36 K and joined in 55 K and actually he is not worth it but our management dont understand this situation is becoming critical NOW THIS IS TREND IN OUR.
IF U WANT GOOD SALARY leave company and come back in 2-3 months.
WHAT CAN BE DONE..!!
SENIORS HELP US
From India, Mumbai
This is a problem of every industry. I am working as manager HR in MFG unit in our company employee left the company at 36 K and joined in 55 K and actually he is not worth it but our management dont understand this situation is becoming critical NOW THIS IS TREND IN OUR.
IF U WANT GOOD SALARY leave company and come back in 2-3 months.
WHAT CAN BE DONE..!!
SENIORS HELP US
From India, Mumbai
Im surprised to note that no one here has mentioned anything about getting a rehire policy in place...a rehire policy would take care of such issues and also be modified with time if a negative trend emerges as a result of it...as rightly said in one of the previous post, that depending on who is in a better position to leverage, the employer or the employee who wants to join back, a decision can be made.
It does not make sense to offer him a hike on what he was drawing already...a mid way solution can be to offer him just what he is getting from the present employer, so there are not too many grievances, and the candidate also does not feel that he is at the losing end of the bargain. If not, then it is best to leave the decision to the management and let them be held accountable for any subsequent chaos :-) People would not just leave their job and come back asking to be rehired at a higher salary because job hopping is not easy, and rehires are an exception. Also, it is necessary to hire them at the same designation, if a considerable time hasnt passed, since it would create an unrest in the team if their former colleagues are lower in hierarchy.
Rehiring old employees is always beneficial since they not only take lesser time to start delivering output, but also add values by sharing best practices that they have learnt in other organisations and are able to provide a third person perspective. Also, the fact that they came back is a testimony to the the organsiation, that it is worth coming back to...and this does not go unnoticed between people who are already working there. Having said that, all rehire cases need to be handled with extreme sentivity since it takes no time to get things blown out of proportion.
From India, Pune
It does not make sense to offer him a hike on what he was drawing already...a mid way solution can be to offer him just what he is getting from the present employer, so there are not too many grievances, and the candidate also does not feel that he is at the losing end of the bargain. If not, then it is best to leave the decision to the management and let them be held accountable for any subsequent chaos :-) People would not just leave their job and come back asking to be rehired at a higher salary because job hopping is not easy, and rehires are an exception. Also, it is necessary to hire them at the same designation, if a considerable time hasnt passed, since it would create an unrest in the team if their former colleagues are lower in hierarchy.
Rehiring old employees is always beneficial since they not only take lesser time to start delivering output, but also add values by sharing best practices that they have learnt in other organisations and are able to provide a third person perspective. Also, the fact that they came back is a testimony to the the organsiation, that it is worth coming back to...and this does not go unnoticed between people who are already working there. Having said that, all rehire cases need to be handled with extreme sentivity since it takes no time to get things blown out of proportion.
From India, Pune
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